Oil & Gas Divestitures
Determining ownership and obligations before a sale leads to better clarity and more options for the seller.Whether you start preparing for divestment at the start of ownership or just before a sale, good organization and data integrity with respect title and production can generate material benefits for your organization.
Divestiture Title Due Diligence
Divestiture due diligence often takes shape as a “pre-acquisition” due diligence to identify information gaps and defects before the Buyer conducts it’s due diligence. We can complete or create title ownership records or conduct a targeted review of leases, material contracts or database records.
Our divestment diligence supports the seller by providing accurate and up-to-date information about their properties, reducing title defects and facilitating the transaction from a title standpoint.
We perform more than 50 different analyses in connection with transaction due diligence, broadly falling into the following categories: Working Interest and Net Revenue Interest Confirmation, Public Records Research, Production Review, Lease Analysis, Material Contract Review, and Lien, Lawsuits and Encumbrances Research.
Using best practices in data management and content management tools to enhance our teams’ collaboration, we are comfortable working with complex, imperfect or large volumes of information.
Our experience is your advantage. We have worked on deals of every type and size, in all major basins across the United States. We have established relationships with land departments and oil and gas leaders nationwide which facilitates our process and adds values for our clients.
We have worked on deals of every type and size, in 40 states and all major basins across the United States. We review producing and non-producing wells, PUDs and minerals on fee, federal, state, and tribal lands. We have regional subject matter experts, local landmen and a team of due diligence professionals who have wide-ranging experience.
FAQ
First and foremost, make sure you have a correct and complete schedule of leases and wells, including all the customary data points. We recommend updating or creating schedules for material contracts, consents, payout status, and liens.
When you are ready to sell properties or an asset, it may seem counterintuitive to invest in title work. You may think, “Let the buyer figure it out!” In reality, when a seller’s land records are in poor condition, it creates a lot of unnecessary work for both parties’ land teams, counsel, leadership, and technical teams to correct and/or come to an agreement regarding the property schedules. Preparing land records and title materials ahead of time can reduce deal costs from unnecessary friction in the transaction.
The process depends on the scope of the review. The key drivers are the number and type of properties, the age of the base title, and the data we use as the starting point for our work.
We work on deals of every type and size in 40 states. We review oil & gas properties (producing and non-producing wells, PUDs, and minerals) and all other surface and subsurface interests on fee, federal, state, and tribal lands.